The News
The European Central Bank cut its benchmark interest rate to 2.25% Thursday, as it moved to shore up economic growth in the face of a transatlantic trade war.
The quarter percentage point cut is in line with economists’ expectations, with at least two more cuts likely this year.
“The outlook for growth has deteriorated owing to rising trade tensions,” the ECB said in a statement, adding that services inflation had “eased markedly over recent months” and overall inflation would likely settle at around 2% “on a sustained basis.”
By contrast, the US Federal Reserve chair yesterday warned that the conditions that lead to stagflation — high inflation and slow growth — could imperil the US economy.
AD